The most easterly of the islands of the Caribbean, Barbados lies 2,500 km southeast of Miami, and covers an area of 166 square miles. In 1996, the population of the island was estimated at 263,000, making it one of the most densely populated countries in the world with 1,584 persons per square mile.

Tourism anchors the economy 

One of the earliest references to the benefits of the tourism industry in Barbados dates back to 1912, where visitors to the island were credited with contributing to the increasing economic prosperity of the then British colony.

Eight decades later, this observation still rings true. Tourism is the cornerstone of the Barbadian economy, surpassing sugar as the island’s main foreign exchange earner in the 1970s. The tourism industry in Barbados today occupies a position of economic and developmental importance quite similar to the sugar industry in colonial times, embraced as an economic savior and actively championed by the government.

A mass market tourist destination since the 1950s, Barbados offers the traditional “three S’s”—sun, sea and sand—as its primary attraction, branching out in recent years to include sports, heritage, cultural and ecotourism attractions.

This latter diversification has been due in part to increased worldwide competition for a finite pool of increasingly demanding travelers, who are no longer content to simply lie on the beach for the duration of their holiday.

Decreased agricultural exports by all the Caribbean islands and an increased dependence on tourism have also put added pressure on Barbados to differentiate itself as a destination, and offer something more to the visitors that flock to the region every year.

U.K. remains a key source market

Barbados depends entirely on its source markets to provide transportation for visitors to the island, and is consequently bound by external market conditions. This is demonstrated with fluctuating tourist arrivals, where the effects of the recession in the 1980s and the Gulf
War in the early 1990s are clearly seen.

The addition or withdrawal of airlines and cruise vessels are generally beyond the control of tourism officials, who often find themselves at the mercy of the corporate bottom line. 

Profitability decisions which do not consider the withdrawal of patronage often signal a
unrecoverable blow to the affected islands. The failure of Pan Am was one such occasion which resulted in severely constrained airlift from the United States.

In 1999, Barbados was host to 517,870 stay-over visitors and 432,584 cruise passengers. The Caribbean as a region receives the majority of its visitors from the United States, due to the close proximity and ease of access. Visitor arrivals to Barbados, on the other hand, are dominated by the U.K. market which contributed 39 percent of total stay-over visitors to the island last year.
 

The strength of the U.K. economy, coupled with ample scheduled and charter air access (including weekly Concorde flights from London), have served to solidify the dominance of the U.K. market.
 

Barbados: A market outlook

Unlike some of its neighbors, Barbados does not boast a strong branded presence in the accommodation sector, which is dominated by independently owned and operated properties.  There are, however, several well-established local chains including Gems of Barbados, Elegant Resorts of Barbados and Almond Beach Resorts.

New construction and development has been picking up over the last few years and there are quite a few projects in the works. It is estimated that by 2003, there will be 3000 newly constructed or refurbished rooms added to the island’s room stock.
 
 

By all accounts, the tourism outlook for Barbados is positive.  Since 1994, tourism arrivals have been steadily increasing, and the boom in hotel construction projects indicates confidence in the industry.

Based in London, Lisa Jebodhsingh is a research analyst in Arthur Andersen’s Hospitality and Leisure Services Group

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